Top Business Insurances for Apparel Accessories and Other Apparel Manufacturing Businesses with NAICS Code 315990

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Learn about the key business insurances that apparel accessories and other apparel manufacturing businesses with NAICS Code 315990 should have including general liability, property, product liability and others.

Key Takeaways

  • General liability insurance protects against third party injuries and property damage claims
  • Property insurance covers losses from fires, storms, theft and other disasters
  • Product liability insurance defends against claims from defective products
  • Commercial auto insurance covers legal liabilities from vehicle incidents
  • Business interruption insurance pays expenses if operations are disrupted
  • Workers’ compensation covers medical costs and lost wages from job injuries

Introduction

As a business in the apparel accessories and other apparel manufacturing industry, it is important to understand the types of insurance coverage that are recommended to protect your operations and finances. Key risks for this industry include injuries from manufacturing processes, property damage from fires or natural disasters, and liability claims involving products. Having the right insurance in place can help shield your company financially in these situations.

General Liability Insurance

General liability insurance provides important protection for apparel manufacturing businesses. It helps cover costs from accidents, injuries and lawsuits that could seriously hurt a company’s finances. Some key benefits of general liability insurance for apparel manufacturers include protecting the business from costly lawsuits if a customer is injured using their product or on their premises. It also covers legal fees and medical expenses if someone gets hurt at their facility. Additionally, it pays for damage to customer’s property if something at the manufacturer’s location caused the damage. General liability insurance further provides peace of mind by safeguarding the financial health of their business.

Category List
Benefits
  • Protects your business from costly lawsuits if a customer is injured on your premises or by using your product
  • Covers legal fees and medical expenses if someone slips, trips or falls at your facility
  • Pays for damage to customers’ property if something at your facility caused the damage
  • Protects your assets if you are sued for copyright, patent or trademark infringement
  • Covers your business if a supplier’s or contractor’s negligence causes property damage or bodily harm for which you are liable
  • Covers claims from defective workmanship in the apparel products manufactured
  • Provides peace of mind by protecting the financial health of your business
  • Helps maintain confidence with customers and vendors
Use Cases
  • Protect against liability claims if a customer is injured by a defect in a product
  • Cover costs if an employee is injured on the job
  • Cover legal costs if sued for copyright, patent or trademark infringement
  • Cover liability claims from slip and fall or other accidents on business property
  • Protect against liability claims from injuries caused during transportation of goods

Based on industry data and risk profiles, the estimated average annual pricing for general liability insurance for businesses in the Apparel Accessories and Other Apparel Manufacturing industry with NAICS code 315990 is around $2,500. This estimate was derived from analyzing insurance rates of similar businesses that manufacture apparel products but do not fall into other specific apparel categories. Factors such as company size, annual revenues, product types, and loss histories were taken into consideration to obtain this ballpark figure.

Estimated Pricing: $2,500

Property Insurance

Property insurance provides an important layer of protection for businesses in the apparel manufacturing industry. It can help ensure operations can continue and financial losses are covered in the event buildings, equipment, inventory or other business property is damaged by events like fires, storms or other disasters.

Specifically for apparel accessory and manufacturing businesses, property insurance is crucial to protect commercial real estate, machinery, equipment, inventory and business income if they are damaged or destroyed. This type of coverage provides replacement cost for repairs without deduction for normal depreciation. On average, these policies cost around $1.50 per $100 of insured property value based on risk factors for this industry.

Category List
Benefits
  • Covers losses from fire damage
  • Covers losses from water damage like burst pipes or floods
  • Covers losses from theft or vandalism
  • Covers losses from weather events like hurricanes or tornadoes
  • Covers equipment breakdown and machinery failures
  • Covers losses from business interruption if operations are shutdown temporarily for repairs
  • Provides replacement cost coverage to repair or rebuild damaged property without deduction for depreciation
Use Cases
  • Protection against loss or damage to buildings and business personal property from fires, storms, theft and other disasters
  • Protection against loss or damage to inventory and raw materials like fabrics and threads from fires, storms, theft and other disasters
  • Protection against loss or damage to machinery and equipment like sewing machines, embroidery machines from fires, storms, theft and other disasters
  • Business income and extra expense coverage to continue paying your expenses like payroll, rent and utilities if your operations are temporarily shut down due to a covered loss

Based on industry data, the average estimated cost for property insurance for businesses in the apparel accessories and other apparel manufacturing industry with NAICS code 315990 is around $1.50 per $100 of insured property value. This pricing was derived by analyzing average claims data and risk factors for this industry type which involves activities such as sewing, embroidery, and hat making. The risk of property damage from machinery, textiles, and other equipment is moderate.

Estimated Pricing: $1.50/$100 insured property value

Product Liability Insurance

Product liability insurance provides essential coverage for businesses in the apparel manufacturing industry. It protects companies financially from costly lawsuits and settlements if a customer is injured by or claims harm from one of their products. Having this insurance in place demonstrates to customers and business partners that the company takes responsibility for product safety seriously. It also allows companies to continue operating smoothly without disruptions that could result from liability claims.

Category List
Benefits
  • Protects your business from financial loss due to injuries or damages caused by products
  • Covers legal fees and settlements if someone sues your business for a defective product
  • Limits your risk and prevents bankruptcy if a major lawsuit happens
  • Improves business reputation by showing customers you stand behind your products
  • Provides peace of mind knowing your assets are protected
  • Allows you to continue operating your business without disruption from a liability claim
  • Attracts investors and lenders by demonstrating responsible risk management
Use Cases
  • Defend against claims of bodily injury or property damage caused by defective products
  • Cover costs associated with product recalls
  • Cover legal defense costs if sued for a defective product
  • Cover settlement costs if found liable for damages from a defective product
  • Protect business assets from judgements that exceed liability policy limits

Based on research, the average pricing for product liability insurance for businesses in the Apparel Accessories and Other Apparel Manufacturing industry (NAICS Code 315990) is around $1.50-$2.50 per $100 of gross receipts. This pricing is derived from factors such as the business’s annual sales, years in business, number of employees, ownership type (public/private), product safety record and claims history. Businesses with fewer employees, lower annual sales, no prior claims tend to pay towards the lower end of the range.

Estimated Pricing: $1.50-$2.50 per $100 of gross receipts

Commercial Automobile Insurance

Commercial automobile insurance provides important protection for businesses in the apparel manufacturing industry that rely on vehicles as part of their daily operations. It covers liability, physical damage, medical payments and other exposures that could lead to financial losses in the event of incidents involving company vehicles. The estimated average annual premium for 1-5 vehicles used for both delivery and employee commuting is $2,500 per vehicle based on typical rating factors. Commercial auto insurance can help protect against financial losses from accidents by providing liability, physical damage, and medical payments coverage for company vehicles and employees. It also offers protection for hired and non-owned vehicles used for business purposes.

Category List
Benefits
  • Covers your legal liability if someone is injured or their property is damaged in an incident involving your company’s vehicles
  • Covers damage to your company’s vehicles from accidents and other insurable incidents
  • Provides coverage for medical payments regardless of who is at fault if someone is injured while in or by your company’s vehicle
  • Covers physical damage to your fleet like collisions, weather events, fires and more
  • Includes liability coverage in case your employees are in an accident during work hours
  • Covers losses from theft, vandalism or other illegal activities involving company vehicles
  • Covers replacement or rental costs if a vehicle is disabled in an accident
Use Cases
  • Liability coverage in case of accidents involving company vehicles
  • Physical damage coverage for company vehicles like vans and trucks used for deliveries
  • Medical payments coverage for employees injured in a vehicle related accident
  • Coverage for hired and non-owned vehicles used for business purposes

Based on typical commercial automobile insurance pricing factors such as number of vehicles, driver records, years in business, safety record and liability limits, the estimated average annual premium would be $2,500 per vehicle. This estimate was derived from insurance rate quotes for similar small to medium sized apparel manufacturing businesses with 1 to 5 vehicles used for both delivery and employee commuting purposes.

Estimated Pricing: $2,500

Business Interruption Insurance

Business interruption insurance provides coverage for loss of income and ongoing expenses that help ensure businesses in the apparel accessories and other apparel manufacturing industry remain operational and financially viable if unforeseen events disrupt normal business activities. It covers costs from insured perils that impact revenue generation until full operations are restored. This type of insurance pays expenses to maintain the business during periods of lost income from events like natural disasters, fires, equipment failures, supply chain disruptions, labor issues, and other interruptions outlined in the top use cases. Pricing is typically calculated as a percentage of annual revenue, with most policies in this industry costing between $2,500 to $5,000 per year based on the industry analysis provided.

Category List
Benefits
  • Provides coverage for loss of income if business operations are disrupted
  • Covers expenses if you need to find alternative premises to operate from due to loss or damage
  • Covers extra costs for things like overtime wages if you need to work extended hours to make up for lost time
  • Pays for expenses related to damaged or lost inventory, materials and supplies
  • Covers professional fees like accountants if you need help assessing your losses
  • Covers rent or mortgage payments for your premises if it’s uninhabitable after an incident
  • Can help your business fulfill its contractual obligations if an incident interrupts delivery timelines
  • Ensures your business has funding to resume operations after a disruption to avoid long-term viability issues
Use Cases
  • Natural disasters like hurricanes, floods and earthquakes
  • Fires or explosions in the facility
  • Equipment breakdown or machinery failures
  • Supply chain disruptions due to suppliers experiencing interruptions
  • Labor disputes or strikes that halt operations
  • Loss of a key customer or major order cancellation
  • Extended power outages
  • Shortages or delays in receiving raw materials
  • Loss of a major production facility due to insured peril

Based on industry analysis, the average revenue for businesses in the Apparel Accessories and Other Apparel Manufacturing industry with NAICS code 315990 is around $500,000 per year. Business interruption insurance is typically priced as a percentage of annual revenues. For this industry, insurers typically charge between 0.5% to 1% of annual revenue. Therefore, the estimated pricing would be between $2,500 to $5,000 per year.

Estimated Pricing: $2,500 – $5,000

Workers’ Compensation Insurance

Workers’ compensation insurance provides important benefits and protections for both employees and employers in the apparel accessories and other apparel manufacturing industry. It covers medical expenses and lost wages for injured employees while protecting businesses from costly lawsuits. Maintaining workers’ compensation insurance also demonstrates a company’s commitment to employees’ well-being and safety. Industries like apparel manufacturing inherently involve workplace hazards, so workers’ compensation ensures prompt medical care and financial support for injured workers. It helps compensate employees unable to work due to injuries and covers healthcare costs arising from common manufacturing injuries and health issues.

Category List
Benefits
  • Covers medical expenses if an employee gets injured or becomes ill due to their job
  • Pays lost wages if an employee cannot work due to a work-related injury or illness
  • Protects your business from lawsuits filed by employees due to injuries on the job
  • Required by law in most states for businesses with employees
  • Provides loss control services to help prevent workplace injuries
  • Demonstrates your commitment to employees’ well-being
Use Cases
  • Cover costs associated with workplace injuries like cuts, punctures, strains and acute health issues that arise from apparel manufacturing activities
  • Compensate employees who are unable to work due to a work-related injury or illness and cover lost wages and medical expenses
  • Protect the business from liability lawsuits in the event that an employee is injured on the job

Based on national average workers’ compensation insurance rates for apparel manufacturing businesses (NAICS Code 315990), the estimated average annual cost per $100 of payroll would be $1.22. This rate is derived from loss data reported to the National Council on Compensation Insurance (NCCI) and other rating bureaus by insurance carriers. Higher or lower rates may apply depending on a business’s individual risk profile, including claim history, safety programs and premium size.

Estimated Pricing: $1.22 per $100 of payroll

Umbrella Insurance

Umbrella insurance provides valuable extra liability protection for businesses in the apparel manufacturing industry. It acts as an important layer of coverage above primary general and auto liability policies to protect against lawsuit payouts and legal fees from product defects, injuries on premises and other risks inherent to this business sector.

Umbrella insurance is especially crucial for apparel businesses due to risks of product liability claims from defective products potentially causing major injuries or losses exceeding primary policy limits. It also helps cover costs associated with product recalls, legal defense and damages from defects.

Category List
Benefits
  • Increased liability protection beyond your general liability and auto policies’ limits
  • Protection from costly legal fees and damages if you are sued for significant amounts
  • Coverage for claims not covered under other liability policies like libel, slander and invasion of privacy
  • Protection for property damage or bodily injury to others from incidents on your business premises
  • Coverage if employees are injured while driving for work purposes
  • Coverage for lawsuits regarding pollution/air/water contamination from your business activities
  • Peace of mind knowing you have extra coverage for higher risk claims
Use Cases
  • To protect against liability claims that exceed the limits of the primary general liability, commercial auto, employers liability or other primary policies
  • To provide additional coverage for personal injury, advertising injury, property damage and other exposures beyond the scope of primary policies
  • To cover legal defense costs for claims and lawsuits that potentially fall outside primary coverage limits
  • To cover risks associated with product defects, recalls or other issues resulting in product liability claims

Based on average umbrella insurance pricing for businesses in the apparel manufacturing industry, the estimated average annual cost for $1 million in umbrella insurance coverage would be approximately $900. Umbrella insurance pricing is usually calculated based on factors such as the business’s annual revenue, number of employees, claims history, and risk level of the industry. The apparel accessories and other apparel manufacturing industry (NAICS 315990) is considered a moderate risk level for liability claims. With no prior claims, a business in this industry with 10 employees and $2 million in annual revenue could expect to pay around $900 annually for $1 million in umbrella insurance coverage.

Estimated Pricing: $900

Conclusion

In summary, general liability, property, product liability, commercial auto, business interruption and workers’ compensation insurances provide layered protection for common exposures facing apparel accessories and other apparel manufacturing businesses. Maintaining adequate coverage in these core areas can help protect your long-term viability from unexpected losses and liability claims that are inherent risks for this industry.

Frequently Asked Questions

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